Russia Can’t Do Without Cross-Border Crypto Payments, Consensus Reached – Finance Bitcoin News

Key government institutions have agreed that Russia must legalize crypto payments for international settlements. The proposal has gained support in recent months since Moscow’s decision to invade Ukraine was met with wave after wave of Western sanctions.

Financial authorities in Russia are considering legalizing international cryptocurrency payments

Under the current conditions, “it is impossible to do without cross-border cryptocurrency settlements,” Russia’s Finance Ministry and Central Bank have concluded after reassessing their positions on the matter, Russian media reported. The institutions are obviously referring to the restrictions imposed over the conflict in Ukraine which have significantly limited Russia’s access to global finance.

Both financial regulators now believe that it is necessary to legalize international settlements with cryptocurrencies, Deputy Finance Minister Alexei Moiseev revealed in an interview with the Russia-24 TV channel, quoted by the Tass news agency. He believes this should happen soon.

The two institutions have had a long-running clash over the regulation of digital currencies such as bitcoin in Russia, with the Ministry of Finance (Minfin) pushing for the legalization of various operations with them and the Bank of Russia proposing a blanket ban earlier this year.

Moiseev admitted that these differences remain. But the senior official pointed out that the Central Bank of Russia (CBR) has updated its approach regarding crypto payments in the context of foreign trade relations, taking into account the changed situation. He elaborated further:

We are reconsidering it. Because the infrastructure we plan to create is too rigid for the use of cryptocurrencies in cross-border settlements, which of course we must first of all legalize somehow.

The Deputy Minister of Finance explained that the aim will be to give Russians the opportunity to use cryptocurrency in international payments, on the one hand, and on the other to put it under control so that there is no possibility of using it for money laundering, payment. for drugs or other illegal purposes.

Minfin also proposes to allow people who now open crypto wallets abroad to have wallets offered by domestic entities monitored by the CBR. These will be obliged to comply with the country’s anti-money laundering and know-your-customer regulations, Moiseev stressed.

In June, Bank of Russia head Elvira Nabiullina said cryptocurrencies can be used for payments as long as they “do not penetrate” Russia’s financial system. Commenting on Moiseev’s latest statements for RIA Novosti, the bank’s press service emphasized that the monetary authorities and the Ministry of Finance are not talking about legalizing crypto payment or exchange in the country. Recently, Russian Prime Minister Mikhail Mishustin described digital assets as a “safe option” in foreign trade.

Do you think Russia will legalize international crypto payments in the near future? Share your expectations in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’ quote: “To be a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.